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ISA Consolidation;
Actually it's easier than it sounds

Well that sounds complicated, a prospect nearly as bad as switching current account providers, why bother?

Experience has shown us that people tend to have £3,000 in a Cash ISA here, and an old Tax-Exempt Special Savings Account (TOISA) with £12,000 there and perhaps a Stocks and Shares ISA worth £15,000 investing in Lord knows what somewhere else.
Consolidating these into one simple portfolio with just one statement has been made simpler over the last few years. The Government has set out rules which allow you to transfer your Cash ISAs into one single Cash ISA. More recently with interest rates low they have also allowed you to move your Cash ISA into a Stocks and Shares ISA to create one easy to manage account.

So why do it?

Banks and Building Societies offer higher rates of interest on larger deposits. This is known as tiered interest rates. So bringing all your Cash ISAs together may lead to a higher interest rate overall.

However, with interest rates at an all-time low and Cash ISA rates struggling to beat inflation, moving all your ISA investments into one Stocks and Shares ISA will simplify your accounting. ISA Consolidation makes it easier to create a balanced portfolio of investments that matches your attitude to risk and at the same time could address your financial needs. Income from ISAs is not subject to further income tax and are therefore one of the best ways to boost your income. Currently the income produced by some of the Blue Chip Companies we invest in exceeds that of deposit accounts. Besides this, equities also provide the opportunity for capital growth and rising income to hedge against inflation.



So how do I consolidate my ISAs?

Simple, you can open up an ISA account and your adviser will help you complete an ISA consolidation form for each ISA you hold, whether it is a Cash ISA or a Stocks and Shares ISA. On the form you can nominate whether to transfer as cash and for any Stocks and Shares ISA, in case you wish to keep a particular holding you can select to transfer in stock (in-specie).

Your adviser will send the paperwork to a dedicated asset transfer team who will request the transfer from your current provider and track the process for you.

You should not try to cash in all your ISAs in anticipation of consolidating your ISAs yourself, as you will lose the ISA status of these. When they are transferred directly to your new provider the old provider will issue an ISA certification notice, which allows the capital to be placed into an ISA account for you.
The existing provider also inform the new provider of your contribution details so that they are aware of your remaining ISA allowance you have available during the tax year that you transfer.



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